London's FTSE 100 started Monday on a positive note, rising by 0.2% to 7,512.40, despite the surge in US nonfarm payrolls report in September. Analyst Michael Hewson from CMC Markets (LON:CMCX) attributes this resilience to steady interest rate expectations and a robust economy that could potentially enhance company revenues and earnings growth.
On the corporate front, Metro Bank has announced a new deal with investors that includes a GBP325 million capital raise and GBP600 million in debt refinancing. Of this amount, GBP102 million will come from its largest shareholder, Spaldy Investments. This move comes as JPMorgan placed AB Foods (LON:ABF) on a 'negative catalyst watch'.
Croda International reported a weaker-than-anticipated Q3 performance and expects full-year adjusted pretax profit to be between GBP300 million and GBP320 million. Meanwhile, Citigroup (NYSE:C) is selling its onshore consumer wealth portfolio in China to HSBC (LON:HSBA) Bank China for approximately USD 3.6 billion. In the healthcare sector, GSK is working with Chongqing Zhifei Biological Products Ltd to co-promote its shingles vaccine Shingrix in China.
Real estate firms also made headlines with Assura reporting an annualized rent roll of GBP146.9 million and Sirius Real Estate posting like-for-like rent roll growth of 7.7%. Impax (LON:IEM) Asset Management's assets under management stand at GBP37.4 billion.
In international news, geopolitical tension between Israel and Palestine could potentially trigger an oil price surge, prompting OPEC+ to proceed with caution. The U.S. economy recently added 336,000 jobs but persistent inflation concerns persist due to stagnant wage growth. Following Columbus Day's bond market closure, interest rate updates are expected on Tuesday, particularly since the 10-year Treasury yield hit a 16-year high last week.
The performance of global markets was mixed last week, with the S&P 500 and Nasdaq making gains, while the Dow declined. Investors are now keenly awaiting the consumer price inflation report and JPMorgan Chase (NYSE:JPM)'s earnings report. Given the geopolitical risks, inflation concerns, and surging interest rates, the short-term market outlook remains neutral. As China's top diplomat expressed, there is hope for more rational management of US-China differences moving forward.
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